“Bad with money” is a label that many of us have, at times, embraced a bit too snugly, sometimes without even realising it. Yet, are our financial fates really sealed? Or is it just a self-fulfilling tale to be filed under “ how money beliefs can affect your finances ”?

In our latest episode, we sit down with Victoria Shakeshaft, the content creator behind @ bad.bitch.money on Instagram . She's juggling a law degree, flexing muscles as an occasional weightlifter and, yes, cooking disasters are part of her charm. However, it’s her judgment-free vibe for all things finance that really sets her apart from other financial commentators.

With her candid approach and humour (courtesy of her cat's cameos), Victoria is on a mission to dismantle the shame and stigma around being 'bad' with money. Because dollars-and-cents matter, but the narrative we spin around it matters just as much in shaping our financial destiny.

This episode is not all about gentle money mindsets. We get practical too, discussing practical tips on how to bank smarter and how to cope with the cost-of-living crisis. We talk about why we spiral into debt, strategies to climb out, and how a financial counsellor can be your ally. And for those 'why did I buy that?' moments, Victoria's here to show us how to flip the script on our money narratives.

From a financial counsellor to a fair banking advocate

Victoria Shakeshaft is a former financial counselor who's taken her compassion and expertise into the heart of banking.

Imagine being in a tough financial spot – overwhelmed and unsure where to turn. That's where a financial counsellor steps in. Financial counsellors, as Victoria explains, are like financial first responders working in non-profits or government organisations. Their role is to explore options, collaborate with banks, and find the best outcome for those in crisis.

At the moment, Victoria's taken this passion for helping others to the corporate banking sector. She’s part of a team with a critical mission: to champion banking with a conscience.

Victoria works tirelessly within the system to ensure fairness and empathy aren’t lost in the pursuit of profits. She shapes policies and recommendations so that every interaction, product, and service offered is not only satisfactory but also just and equitable.

Quick banking tips and some ways your bank can help you

Diversify your banking

Ever been at the checkout counter, ready to pay, and suddenly your card doesn't work? Or heard a friend's story about their accounts being locked due to suspected fraud?

These scenarios can be real issues within the realm of digital banking. And it's why Victoria shares an often overlooked tip: diversify where you keep your money.

By spreading your funds across a few institutions, you create a safety net for those just-in-case moments. It's a simple strategy, but incredibly effective for making sure you have access to your money at all times.

Speak up sooner rather than later

Life throws curveballs, and sometimes they hit hard. Losing a job, enduring a prolonged illness, or facing a relationship breakdown can all shake up your financial future. So when financial trouble strikes, your instinct might be to hide it from your bank.

However, banks are not always the intimidating, unapproachable entities we often imagine. Banks can actually be your ally, especially if you're upfront about financial difficulties.

As Victoria points out, the sooner you communicate with your bank, the more flexible options they have to support you. Good service is part of their regulatory obligations, after all. It's a partnership where honesty truly pays off and unlocks solutions that you might not even know existed.

For temporary setbacks, banks might offer reduced payment arrangements or a break from payments until you're back on your feet. But what if the change is permanent – say, a career-ending injury or a major life shift like a divorce? This is where the bank will help you adjust to a new financial reality. This might mean restructuring loans to make them affordable or assisting in major life decisions like property sale.

How do you access financial counsellors?

Financial counsellors can be pillars of support in your financial journey. Beyond offering practical support (which we explore below,) they’re also like life coaches, who genuinely want to hear your story and help you write the next part.

With the right financial counsellor, it's a collaboration, not a lecture. They work within the realities of your situation, considering what you can afford and what the institutions allow. That kind of partnership is foundational to your financial success, as it's built on honesty and empathy. This is even more important if discussing money brings a sense of shame or distress.

So, how do you reach out to a financial counsellor in Australia?

It's simpler than you think. The National Debt Helpline (1 800 007 007) or their website ( ndh.org.au ) are your gateways to finding the right financial counsellor for you. Folks there can guide you to someone that’s a match for you personally and gives the kind of advice that suits your needs (like legal or tenancy advice).

While rapport is key, it’s not about shopping around for a financial counsellor just to hear what you want to hear. Rather, you should be getting credible and realistic advice, even if it's tough to swallow.

With that said, financial counselors – like any profession – come with their own biases and philosophies. So, remember, if the first one doesn’t click, you’re entitled to look for another. This is a relationship where you should feel culturally and emotionally safe, regardless of your gender identity or background.

Top tips for keeping up with the cost-of-living crisis

In today's economy, the rising cost of living is a hot topic on everyone's lips. It’s a challenge leaving many of us financially fatigued. But there’s good news: you’re not powerless.

Everyone has their unique strengths. Maybe you're a natural on the phone, or perhaps you're more comfortable researching online. Are you a people person? Great at research? Whatever your forte, use it to your advantage to tackle your bills and expenses.

Saving on bills may be just a phone call away

Negotiation is an art, and when it comes to managing everyday expenses, it's a skill worth honing. It’s not just for boardrooms and business deals. Imagine calling up your service providers and walking away with a discounted deal. Sounds good, right?

When you’re on the brink of renewing a service or contemplating a purchase, make a call. Think about it: our parents and grandparents often negotiated prices in ways we took for granted. They showed that there's usually some wiggle room for a better deal – whether it's furniture, electronics, or services.

As Ana says, the hardest part of negotiation is often just getting started. Once you're in the conversation, the worst-case scenario is you continue paying what you've been paying. But the best case? You could end up with more money in your pocket, which is always a win in our books.

Practical tips for negotiating your debt payment or bills

1. Research is your secret weapon

Before you pick up the phone or start a chat, do your homework. Compare prices and know what competitors are offering. When you can back up your request with solid evidence of better deals elsewhere, you can push providers to offer you similar or even better rates.

This tactic isn't just theory. Take it from Victoria, who was able to secure a 30% lifelong discount on a virtual address service. She didn't need to push hard; a simple conversation led to significant savings.

The key takeaway here is: don't settle for the listed price. There's always room for a better deal, especially if you're willing to ask.

2. The magic of asking

Ana echoes a fundamental truth: “If you don't ask, you don't get.” This applies to everything from utility bills to mortgage renegotiations.

Here's a practical tip: when negotiating, don't just ask "Is there anything else you can offer me?". Instead, ask "What else can you offer me?". This subtle shift in language triggers a problem-solving mindset. It encourages the other person to think creatively to keep your business.

3. Create a polite and genuine connection

The technique here is as much about human connection as it is about negotiation. Remember, the person on the other end of the line is not the embodiment of the company's policies. Approaching them with a mix of respect and firmness can go a long way. For example, a personal touch, like remembering their name, can tilt the odds to your favor.

Why people get into debt

Why do we fall into debt? We tend to chalk it up to poor spending habits or lack of financial planning. However, the reality is far more complex and deeply rooted. Victoria highlights two things that push people into debt. These are generational poverty and situational poverty.

1. Generational poverty

Generational poverty is like a shadow that follows families across decades. Imagine a child born into a household where money is always tight. They might not get enough nutritious food, which can affect how they perform in school. So, as they get older, they might find it harder to find a good job. This struggle can lead to not knowing much about handling money and getting stuck with debts that keep growing.

2. Situational poverty

On the flip side, situational poverty is more like an unexpected storm. Rather than being about poor choices, situational poverty stems from circumstances spiraling out of one’s control.

It's when a dream trip on credit, a sudden job loss, or unexpected medical expense push people into the depths of debt. People find themselves juggling loans, with each new one a patchwork fix for the last.

Talking about money: role of privilege and how to maintain financial integrity

It's easy to assume that people in debt have just made poor choices in the situational examples above. But this view oversimplifies the issue.

The complete picture of our financial journeys are deeply personal and often invisible to the outside world. It’s often influenced by factors beyond our control, such as the environment we grow up in or the sudden turns life can take. Comparing our financial situation with others is not just unhelpful, but can be misleading.

Victoria introduces a guiding principle for empathetic conversations about money – financial integrity. This is about recognising and respecting the different financial experiences and struggles of others.

For instance, if you grow up with money and learn how to manage it, you're already ahead of someone who's always had to wrestle with legacies of poverty. Clearly, their advice, based on what they know and have seen, might not make sense for people in tougher situations. That's why when we talk about money, we need to understand and remember that we all begin from different places.

Strategies for paying off debt

How do you pay off debt? Before looking for a method to this madness, Victoria recommends getting to know your own debt. We might sound like a broken record here, but everyone's debt story is situational and personal. So, the key is knowing exactly where you stand and what options are best suited for you.

For those struggling with the basics

If someone is barely managing the minimum repayments and is unable to cover basic needs, the advice is clear: seek help immediately. Financial counselling services, like the NDH ( National Debt Helpline ), are your first port of call. They're the lifeboat in a sea of financial distress, offering guidance and options that might not be apparent at first glance.

For those who can pay, but just barely

But what if you're somewhere in the middle? Not drowning, but not swimming freely either? Meet WayForward Debt Solutions. They're here to help folks who’ve stretched their budget too thin but can still manage some payments. As a not-for-profit group, they provide kind, understanding help without the big charges that often come with debt help services.

For those taking charge and self-managing debt

Now, for those who are managing to meet their minimum payments and have a little extra, the approach changes. It's less about tackling the highest interest debt first and more about what feels right for you.

Is there an annoying debt that's like a pebble in your shoe? Maybe it's one related to a past relationship, or perhaps the lender is more persistent than others. Prioritise that one.

Here, small wins can be mighty. Paying off the debt that's most irksome to you might not always be the most efficient method mathematically. But it can give you the momentum and confidence to keep going. And don’t forget to celebrate these wins – they’re your markers of progress, your badges of financial resilience.

How to stop thinking “I’m bad with money”

Victoria suggests that thinking you're “bad with money” is usually just a label we give ourselves. Ask yourself: What money rules do I follow? Who says these are the rules?

Asking these questions is key because being good with money isn't something you're just born with. It's a skill, like riding a bike, and you can get better at it with practice.

We are works in progress

If you've ever felt you're bad with money, isn't it more accurate to say you're a 'work in progress'?

Embracing this idea is more than just a comforting thought. This simple change in language transforms your mindset from a static state to one of growth and potential. It acknowledges that while you might not be where you want to be financially, you are on a journey towards improvement.

Hindsight is 20/20

Ever looked back at a financial decision and cringed? You don’t have to feel that way. Tash and Ana remind us that we always make the best decision with the information available at that time.

It’s convenient to look back with perfect hindsight and judge your past choices, but this isn't fair to your past self. You did the best you could then, and that's a liberating thought to remember. You are allowed to view your financial history as a series of learning moments rather than mistakes.

Change your language to create positive money mindset

Ana jumps in with a crucial point: language matters. The journey from "I'm bad with money" to "I'm financially savvy" starts with changing how you speak about your financial skills.

It’s a gradual process of evolving your self-talk and recognising its impact on what you do with money. You might not see instant change, but the positive self-talk plants seeds of confidence. These seeds eventually blossom into wiser decisions in your financial life.

Some words of inspiration before you go

So, the next time you catch yourself saying, "I'm bad with money," pause and reframe that thought. You're not bad; you're just learning. Much like nurturing a plant, our financial wisdom needs time, patience, and the right environment to flourish. And that's a journey worth embracing.

And now, as we wrap up, it's your turn to keep the conversation going. If this week’s episode sparked that "aha!" moment for you, imagine what it could do for others. Rate us, leave a review, or even better, pass this episode along to a friend. It could be the ray of hope and encouragement someone else needs.

For the rookies in long-term investing, our first 10 episodes are like the ABCs – simple, fundamental, and essential. And our journey together continues off-air. Join us in our Facebook group , follow along on Instagram , or hop onto Pearler Exchange . Pop in, ask questions, share your thoughts, or just say hi—we're all ears and always here.

Happy investing!

Tash & Ana